The International Monetary Fund (IMF) has launched a multi-donor trust fund to deliver capacity development in Somalia.

The Somalia Trust Fund aims at improving macroeconomic institutions, policies, and data systems and will provide over $9m worth of technical assistance and training to Somalia over the next three years.

So far, commitments have been received from the Arab Fund for Economic and Social Development ($3m), the Canadian Department of Foreign Affairs, Trade and Development ($2.5m), and the United Kingdom’s Department for International Development ($1.1m).

On November 20, 2014, MP Ted Opitz announced a Canadian contribution of $2.5m towards the IMF Somalia Trust Fund for Technical Assistance at the High Level Partnership Forum on Somalia in Copenhagen, Denmark.

“This funding is helping to build the capacity of key economic institutions and lay the groundwork for a strong Somali government,” Opitz told Africa Global Funds.

Canada remains committed to the African Union Mission in Somalia and has provided $16m to support the mission since 2010.

“As the Government of Somalia builds its national institutions it must also bring the government closer to the people, creating opportunities for the people to directly engage with decision makers through the strengthening of local governance,” added Opitz.

The IMF will be providing technical assistance in the following areas: public financial management, macroeconomic statistics, tax administration and central bank modernization.

The IMF is continuing its efforts to secure additional contributions to fully finance the Trust Fund’s budget.

Somalia is emerging from a long period of civil war that has lasted for a generation.

In the August 2012, a 275-member Federal Parliament was elected by traditional elders from across the regions and districts of Somalia.

The Federal Parliament in turn elected Hassan Sheikh Mohamud as Federal President and Head of the Federal Government of Somalia.

In the wake of broad international support, the IMF announced in April 2013 that it also recognized the Federal Government of Somalia as the government of Somalia.

This has allowed the IMF to resume the provision of technical assistance and capacity development to Somalia.

It has been recognized that the delivery of capacity development to meet Somalia’s vast needs requires a long-term approach.

Such an approach also needs to be well coordinated with other technical assistance providers—not only to avoid duplication of efforts, but also to ensure that contributions made are complementary.

To this end, the IMF proposed in mid-2014 the establishment of a multi-donor Trust Fund to ensure a sustained delivery of capacity development to Somalia.

Its focus is to support the Somali authorities’ efforts to build key economic institutions and develop capacity for prudent macroeconomic policies.

It also provides a forum to coordinate ongoing efforts with, and among, donors and other technical assistance providers.

“The foundation of a strong, accountable and effective Somali government is critical,” concluded Opitz.